FHA Extends Puerto Rico Foreclosure Moratorium to HECM Borrowers

In response to NRMLA’s request for clarification, officials at the Federal Housing Administration confirmed this week in FHA Info #18-12 that the moratorium extension on foreclosures in Presidentially-Declared Disaster Areas of Puerto Rico applies to HECM borrowers.

NRMLA Executive Vice President Steve Irwin made the announcement at NRMLA’s Western Regional Meeting on Monday moments after speaking with FHA officials.

In a letter submitted last week to General Deputy Assistant Secretary for Housing and Acting FHA Commissioner Dana Wade, and Gisele Roget, Deputy Assistant Secretary for Single Family Housing, NRMLA raised concerns that Mortgagee Letter 2018-02 did not expressly include HECM borrowers in the foreclosure moratorium that was extended through May 18. “We believe this was a drafting oversight and are concerned that an interpretation that narrows the policy of providing foreclosure moratoria to exclude seniors under FHA-insured HECM loans creates disparate treatment,” wrote Irwin on behalf of the association.

NRMLA further commented that seniors endured, and continue to recover from, the same natural disaster as forward mortgage borrowers. They are “bearing the same burdens in piecing their lives back together after these natural disasters.”
 
Download NRMLA’s letter by logging into NRMLAonline.org.